UK Contractors: Small business funding could be boosted by latest Government decision
Limited company contractors might be interested to learn that a recent government decision could provide a major boost to small business funding in the UK.
The Asset Based Finance Association (ABFA), the body representing the asset based finance industry in the UK and the Republic of Ireland, has said that the government’s decision that banks must forward SMEs’ (small and medium-sized enterprises) unsuccessful loan applications to other potential finance providers, including asset based financiers, could very well improve funding for the UK’s smaller firms.
According to the ABFA, by referring smaller sized businesses on to platforms that will connect them with other finance providers, the measures could enable more businesses to find the funding they need.
Forty per cent of businesses give up on finding funding after being turned down by their banks, according to the Government’s consultation paper on the topic.
Jeff Longhurst, Chief Executive of the ABFA, said, “Asset based finance is a key part of the tool-kit available to assist the cashflow of UK and Irish businesses. It’s great to see the Government acknowledge that the industry is already making an enormous contribution to funding the economic recovery, and can make an even greater contribution in the future.”
“We hope that these new measures will begin to close the knowledge gap that is preventing small businesses from accessing the funding ABFA members can provide. ABFA members have been providing finance to SMEs for over 50 years and currently fund more than 43,000 businesses with a combined turnover of £68 billion. But the industry is willing and able to support more businesses.”
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